Subscribe to our free, weekly email newsletter!


Trucking: Truckload spot market in July remains strong, says TransCore

By Jeff Berman, Group News Editor
August 16, 2011

Spot market truckload volumes in July were strong, representing the seventh straight month of record same month spot market freight availability and were up 22 percent on an annual basis, according to new data from TransCore.

This strong performance followed June, which saw the second highest monthly volumes in 2011, next to March, and are the two highest volumes in the 15 years TransCore has been tracking this data.

July volume was down 24 percent compared to June, and TransCore officials said that over the previous ten years July spot market load volumes have declined an average 19 percent on a sequential basis.

Shippers and carriers alike have told LM in recent weeks that the spot market is still attracting top dollar rates, as carriers are reluctant to add capacity at a time when the economic recovery appears tenuous, retail sales are flat, unemployment is high, and gas prices are about a dollar higher than they were a year ago at this time.

“Carriers today are not interested in adding capacity, because rates today are about equal to what they were in 2006,” said Lana Batts, a partner at Transport Capital Partners, in a recent interview. “The price of a truck has gone up from $80,000 to $120,000 and fuel is up, too. Everything is more expensive, and the industry is still charging 2006 rates. It is not sustainable. Trucking is not as easy of a business to get into as it was before.”

TransCore also reported that truckload freight rates were mixed on a seasonal basis in July for all equipment types, with the national average rate—excluding fuel surcharges— down 3.6 percent in July for dry vans compared to June and flat compared to July 2010. The firm said that rates for reefer vans were down 9.4 percent in July compared to June and up 0.6 percent annually. Flatbed rates were flat compared to June and up 11 percent annually.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Seasonally-adjusted (SA) for-hire truck tonnage in November was up 3.5 percent compared to October, which was up 0.5 percent over September at 136.8 (2000=100), marking the highest SA on record.

UPS said that through this acquisition it will augment its healthcare expertise and network in Europe, specifically in the fast growing healthcare markets in Central and Eastern Europe.

Carloads were up 12.1 percent at 312,271, and intermodal at 280,337 containers and trailers saw a 4.5 percent annual gain.

Total November POLB volumes were up 2.1 percent year-over-year at 581,514 TEU, and POLA volumes in November decreased 3 percent compared to November 2013 at 663,346 TEU.

When railroads are doing business with a larger than large customer like UPS, it stands to reason, it can often be the best, and worst, of both worlds, depending on how things are going. That was one of the main takeaways from a presentation by UPS Vice President of Corporate Transportation Services Ken Buenker at this year’s RailTrends conference in New York.

Article Topics

News · Trucking · TransCore · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA